Amanda inherited the only local cable TV/Internet company in town after her father passed away. The company has a local monopoly on the delivery of high-speed Internet service. The company is completely unregulated by the government and is therefore free to operate as it wishes. Assume that Amanda understands the true power of her new monopoly. Which of the following statements is (are) correct?
(i) She will be able to set the price of high-speed Internet service at whatever level she wishes.
(ii) The customers will be forced to purchase high-speed Internet service at whatever price she wants to set.
(iii) She will be able to achieve any profit level that she desires.
A. (i), (ii), and (iii)
B. (ii) only
C. (i) and (iii) only
D. (i) only

Explanation: Monopoly is a market structure that is characterized by a single seller, selling a unique product in the market. Usually, in a monopoly market, the seller encounters little or no competition, and he/she is the sole seller of a particular product or service with no close substitute. He/she enjoys the power of setting the price for his goods.

In the scenario above, Amanda can only set the price of her service at whatever level she pleases. She can not force the customers to purchase her service, and neither can she achieve an unlimited level of profit, because the customers can choose not to purchase her service if the the price level is not favorable.